Pure Storage Inc (PSTG)
Days of inventory on hand (DOH)
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 50.35 | 41.43 | 45.73 | 33.00 | 38.70 | |
| DOH | days | 7.25 | 8.81 | 7.98 | 11.06 | 9.43 |
February 4, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 50.35
= 7.25
The days of inventory on hand (DOH) for Pure Storage Inc has shown a fluctuating trend over the past five years. In 2024, the DOH decreased to 7.25 days from 8.81 days in 2023, indicating that the company was able to manage its inventory more efficiently. This improvement suggests better inventory turnover and liquidity.
Comparing 2024 to 2022, there was a slight decrease in DOH from 7.98 days to 7.25 days, indicating a continued efficiency in managing inventory levels. This is a positive sign as it shows that the company is optimizing its inventory turnover cycle.
In 2024, Pure Storage Inc had a significantly lower DOH compared to 2021, where it was 11.06 days. This indicates that the company has improved its inventory management practices over the years, leading to a more streamlined and efficient operation.
Compared to 2020, the DOH in 2024 also improved from 9.43 days to 7.25 days, showing a positive trend in inventory management for Pure Storage Inc.
Overall, the decreasing trend in the days of inventory on hand for Pure Storage Inc over the past five years reflects a more efficient inventory management strategy, which can lead to reduced carrying costs, improved cash flow, and better overall operational performance.
Peer comparison
Feb 4, 2024